2023-07-31 11:22:34
The world’s second-largest brewery group, Heineken, is lowering its profit forecast for 2023 because of shrinking demand for its beverages. The Dutch group, which owns the Brau-Union brands Gösser and Zipfer in Austria, announced today that operating profit before one-off effects will grow between zero and a mid-single-digit percentage this year.
Previously, Heineken had forecast growth of a mid- to high-single-digit percentage. In the first half of the year, beer sales fell by 5.6 percent to 120.1 million hectoliters, with demand in Asia in particular falling by 13.2 percent due to the economic slowdown.
In the second quarter, the minus worsened compared to the first quarter. Heineken blamed a weak economic environment and strong price increases for this. The shrinking business in Vietnam, one of the group’s largest markets, was particularly difficult for the brewer.
Price increases increase sales
In terms of sales, however, the price increases paid off. This climbed by 6.3 percent to EUR 17.4 billion in the first half of the year. Operating profit fell by 8.8 percent to 1.94 billion euros – analysts had only expected a minus of 4.8 percent in a survey conducted by Heineken.
CEO Dolf van den Brink expects a turnaround in operating profit in the second half of the year, and the drop in sales should also improve to a low single-digit percentage.
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